Nike- Managerial Case Study

4914 Words Mar 25th, 2011 20 Pages

Business Case Study
Management Theory
Submitted to:
Dr. J. Saleeby
Done by:
Rola El Cheikh
Thursday, December 23, 2010

Executive Summary
Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the company focused on providing high quality running shoes designed especially for athletes by athletes, at competitive prices.
Today, Nike is the world's leading maker of athletic shoes, equipment and apparel.
Nike has invested highly on marketing. It has signed exclusive and expensive marketing deals with some of the world's top athletes to promote its products. Nike’s marketing campaigns featured winning athletes as spokespeople, and winning teams as an indication of Nike success.
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In 1988, Nike declared its first ads in “the just do it” campaign.
Later and after entering the European market, Nike became actively involved as a sponsor of soccer youth leagues, local clubs, and national teams. The big break came in 1994, when the Brazilian team, the national team for which Nike had real sponsorship, won the World Cup. The victory led overseas revenues to surpass U.S revenues for the first time.
Today Nike dominates the athletic footwear market. Nine of the 10 top selling basketball shoes, for example, are Nikes. Nike introduces hundreds of shoes each year for 30 sports, averaging one new shoe style every day of the year. Swooshes abound on everything from wristwatches to golf clubs to swimming caps.
In the light of management theory, the founder had played the role of the entrepreneur who committed organizational resources to develop innovative goods and services. He decided to expand internationally to open new markets for the company’s products. Nike’s management is in accordance with the administrative management theory. They focus on identifying the principles that will lead to the creation of the most efficient system of the organization and management. Their theory evolved to organizational environment theory with an open system that takes in resources from its external global environment and converts them into goods and services that are sent back to the environment for purchase by

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